Mix base layer. In a mixing bowl, combine softened cream cheese, powdered sugar, and vanilla extract. Mix well until smooth and creamy.
Fold in whipped topping. Gently fold in the entire tub of Cool Whip into the cream cheese mixture. Continue mixing until all ingredients are well combined and the dip is smooth.
Adjust taste preference. Taste the dip and add more powdered sugar if desired, to reach your desired level of sweetness.
Refrigerate. Transfer the fruit dip to a serving bowl and refrigerate for at least 1 hour to allow the flavors to meld together and the dip to firm up slightly.
Prep the fruit. Prepare your assorted fresh fruits by washing them thoroughly and cutting them into bite-sized pieces if necessary.
Serve and enjoy. Once chilled, remove the fruit dip from the refrigerator and serve alongside the fresh fruits for dipping.